Bladewatch.com

http://www.wallstreetandtech.com/blog/archives/2008/04/finra_issues_gu.html

In the aftermath of the clamorous Soc Gen scandal , FINRA has issued guidance to financial firms outlining best practices for detecting and preventing rogue trading.

FINRA CEO Mary L. Schapiro pointed out that while rogue trading isn’t new, pervasive elctronic trading and market lingages have increased pressure on some firms to relax internal controls.

She said recent events highlight the importance of routinely and rigorously assessing risk management systems.

This is particularly important “in light of the increasingly global nature of the financial services industry, the highly competitive trading environment and the complexity of many of the products being traded,” she added.

FINRA is the largest non-governmental regluator of securities firms (I found out when browsing their site about this announcement)

It will be interesting to see what changes in business process, best practice or compliance/auditing result from the guidance that has been issued. Ensuring that the production/trading systems are locked down, that the access people have to the systems and the data is restricted to the users’ requirements to fulfil their role is the way forward. How we manage the need to allow people to do their jobs, whilst managing the need for compliance, accountability in terms of regulatory requirements will be the challenge, something I suspect that affects many of the banks today.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.